MP Materials Corp. (NYSE:MP) Relative Strength Index (RSI) is 40.03, with weekly volatility at 6.30% and ATR at 2.16. The MP stock’s 52-week price range has touched low of $9.78 and a $51.77 high. Intraday shares traded counted 2.71 million, which was 53.31% higher than its 30-day average trading volume of 5.81M. Its shares traded lower over the last trading session, losing -3.50% on 05/21/21. The shares fell to a low of $26.37 before closing at $26.49. MP’s previous close was $27.45 while the outstanding shares total 168.92M.
Investors have identified the Other Industrial Metals & Mining company MP Materials Corp. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.69 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
MP Materials Corp. (MP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For MP, the company has in raw cash 1.18 billion on their books with 41.56 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.24 billion total, with 72.92 million as their total liabilities.
MP were able to record -9.96 million as free cash flow during the 09/01/2021 quarter of the year, this saw their quarterly net cash flow reduce by 661.96 million. In cash movements, the company had a total of 9.34 million as operating cash flow.
Potential earnings growth for MP Materials Corp. (MP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/01/2021 quarter of the year, MP Materials Corp. recorded a total of 59.97 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 65.45% coming in sequential stages and their sales for the 09/01/2021 quarter reducing by -89.41%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 17.94 million trying to sell their products during the last quarter, with the result yielding a gross income of 42.03 million. This allows shareholders to hold on to 168.92M with the recently reported earning now reading 0.10 cents per share. This is a figure that compared to analyst’s prediction for their 09/01/2021 (0.11 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.70 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MP sounds very interesting.
Is the stock of MP attractive?
In related news, Chairman and CEO, Litinsky James H. sold 4,603,123 shares of the company’s stock in a transaction that recorded on Mar 26. The sale was performed at an average price of 33.78, for a total value of 155,470,479. As the sale deal closes, the 10% Owner, JHL Capital Group LLC now sold 3,330,097 shares of the company’s stock, valued at 112,474,026. Also, 10% Owner, JHL Capital Group LLC sold 176 shares of the company’s stock in a deal that was recorded on Mar 26. The shares were price at an average price of 33.77 per share, with a total market value of 5,944. Following this completion of acquisition, the Director by Deputization, QVT Financial LP now holds 1,598,801 shares of the company’s stock, valued at 53,999,504. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.
3 out of 5 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on MP Materials Corp.. 0 analysts has assigned a Sell rating on the MP stock. The 12-month mean consensus price target for the company’s shares has been set at $40.80.